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Responsible Management in Asia Responsible Management in Asia Perspectives on CSR Edited by Geoffrey Williams CEO, OWW Consulting Selection and editorial content © Geoffrey Williams 2011 Individual chapters © the contributors 2011 Softcover reprint of the hardcover 1st edition 2011 978-0-230-25241-7 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6-10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2011 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-349-32203-9 ISBN 978-0-230-30680-6 (eBook) DOI 10.1057/9780230306806 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress. 10 9 8 7 6 5 4 3 2 1 20 19 18 17 16 15 14 13 12 11 This book is dedicated to my Sayang ... who is all I need in the world Contents List of Figures and Tables ix Acknowledgements xi About the Authors xiii Introduction: Corporate Social Responsibility: Perspectives from Asia 1 Geoffrey Williams 1 Pathways to Sustainability: Philantropy, Charity, CSR 13 Josie M. Fernandez 2 Corporate Social Responsibility in India 27 Meena Galliara 3 Social Responsibility Practices of Business Organizations: Bangladesh Perspective 44 Dewan Mahboob Hossain 4 The Rise of CSR Public Policy in Asia: The Case of Southeast Asia and China 65 Joëlle Brohier- Meuter 5 The Role of Civil Society: Organizational Drivers of CSR in Asia 87 Brian Lariche and Nicole M. Helwig 6 From CSR Concepts to Concrete Action: Integrated Approaches to Improvement at the Factory Level 100 Ivanka Mamic and Charles Bodwell 7 Social Partnership Industrial Relations in PT Hero Supermarket, Indonesia 117 Magdalene M. Kong 8 Consumers and CSR in Asia: Making Sustainability Easy for Consumers: The New Opportunity for Corporate and Societal Innovation 133 Cheryl D. Hicks and Fiona Hovenden vii viii Contents 9 Responsible Tourism in Asia 146 Rod Allan A. de Lara and Arno Thöny 10 Corporations and CSR in Asia: Sustainability As the Future Driver of Corporate Innovation and Entrepreneurship 161 Cheryl D. Hicks and Kevin Teo 11 The Growing Risk of Climate Change: Implications and Strategies for Asian Companies and Economies 179 Ruth Yeoh 12 CSR Initiatives for Green Buildings: Perspectives of Hong Kong Financial Institutions 203 Paul Boldy and Lisa Barnes 13 Practical Ethics and Carbon Finance 223 Wilfred Walsh 14 Sustainable and Responsible Investment in Asia 234 Geoffrey Williams 15 Sustainable Investing in Asia: Uncovering Opportunities and Risks 256 Falko Paetzold 16 Sustainability Reporting: Measurements and Goals for a Sustainable Future 277 Nelmara Arbex Conclusion: Corporate Social Responsibility: Perspectives from Asia – The Future and Its Challenges 295 Geoffrey Williams Index 321 Figures and Tables Figures 3.1 Social responsibility concerns 49 3.2 Main dimensions of social responsibility practices in Bangladesh 57 6.1 Framework for analysis 102 6.2 Structure of the factory improvement programme 106 8.1 Company product energy usage from life cycle perspective 135 9.1 Global travel market growth rates and forecasts 147 11.1 Growing CO2 emissions 181 11.2 World primary energy consumption 182 11.3 The risk spectrum 183 11.4 Constraints and possible solutions of renewable energy development in Asia 184 11.5 Three strategies for sustainable development in Asia 185 11.6 How the CDM can help developing countries in Asia 187 11.7 Drivers of strategic vision towards a low- carbon future 192 11.8 Environmental Responsibility of YTL Corporation – selected excerpts adapted from YTL Corporation Bhd, Corporate Social Responsibility Report 2006 199 13.1 Carbon dioxide concentration of earth’s atmosphere as measured at Mauna Loa 1958–2006 224 13.2 Measured changes in global temperatures from 1880 to 2005 225 13.3 Edwin Hubble’s 1929 data showing the relationship between a galaxy’s recession velocity and its distance 227 13.4 Carbon dioxide concentration against temperature anomaly 227 13.5 Atmospheric carbon dioxide concentration vs. temperature anomaly in degrees celsius 228 14.1 The simplest SRI schematic 237 14.2 The growth in SRI funds in Asia 243 14.3 SRI index performance: the Indonesia SRI-Kehati index 248 ix x Figures and Tables 16.1 Numbers of known GRI Guideline- based reports 282 16.2 Numbers of known GRI- based reports from Asia 284 Tables 3.1 Carroll’s four responsibilities of business 47 3.2 Economic vs. Socio-economic model 48 4.1 Analysis criteria – CSR public policy instruments and activities – CSR Navigator 67 4.2 Country typology – CSR Navigator 68 4.3 Public policies on Corporate Social Responsibility: The role of governments in Europe 69 4.4 Southeast Asia’s main general public CSR initiatives 73 4.5 Field of impacts of public CSR initiatives in Thailand 76 4.6 Main Public CSR initiatives in China 77 4.7 Some blacklisting activities by Chinese public actors 82 7.1 Data on strike demands nationwide 2000–5 122 9.1 Global travel market growth rates and forecasts 148 9.2 Asian tourism economic size and employment 148 9.3 Comparative principles of leading fields of thought 153 11.1 Clean energy incentives by country 187 11.2 Costs of renewable energy compared with fossil fuels and nuclear power 189 11.3 Asian government renewable energy targets 191 12.1 Level of education 209 12.2 Participants’ position within the company 209 12.3 Length of employment 209 12.4 Summary of information 210 12.5 Corporate Social Responsibility 215 14.1 Sustainable and responsible investment funds in Asia 242 14.2 Signatories to the UN principles for responsible investment (Global and Asia) 245 Appendix 1: Known GRI reporters in Asia, by country 291 Acknowledgements I have been able to prepare this volume because of the expertise, resources and support of my company OWW Consulting and the marvellous staff that I am fortunate to work with. We have been able to draw together the material, background and insights to bring the project to a conclusion. My business partner Luke Wood, Chief Technical Officer at OWW, was typically sceptical but generously allowed me the time off to complete the project while he held fort at the company. I have also benefited from our partners at the Academy of Responsible Management (ARM), which is a new and exciting initiative in Corporate Social Responsibility (CSR) education in Asia and the Middle East. The ARM programmes, run in collaboration with the Malaysian Institute of Management and Universiti Sains Malaysia, have brought me into con- tact with many companies and practitioners in Asia who have offered their views and guidance on the development of CSR in the region. These insights have also benefited from presentations and exam- ples from participants at the first and second International CSR and SRI Conferences 2008 and 2009 in Kuala Lumpur, organized by OWW Consulting and the EU–Malaysia Chamber of Commerce and Industry (EUMCCI), and the first and second Global CSR Summits 2009 and 2010 in Singapore, organized by The Pinnacle Group International (TPGI) and supported by OWW Consulting. Events like these bring together leading practitioners and experts from Asia and around the world from all areas of CSR and SRI. They are vibrant forums for the exchange of ideas and sharing of experiences, which help us all to understand CSR as a living concept promoted by a dynamic and committed community of practice. Of course, as for any edited volume, my main vote of thanks must be extended to the authors of the chapters, who have generously pro- vided the material for each of the chapters and have shown dedication in editing and redrafting the material according to our suggestions. In this respect I must also thank Carlos Eduardo Oliveros at OWW and ARM, who helped in the administration of the requests made to the authors. I would also like to thank Amy Russell, who headed my team of editorial assistants, including Brian Brinker and Jack Hall, who together xi xii Acknowledgements with Carlos and Amy put the changes into the document files more efficiently than I could have managed. Finally, I would like to thank Virginia Thorp at Palgrave Macmillan for her commitment, dedication and support to this project. She and her assistant Paul Milner have both had the patience of saints in wait- ing for the final draft to be delivered. About the Authors Nelmara Arbex Nelmara Arbex joined the GRI Secretariat in July 2006 as Director for Learning and Services.

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